Bank Nifty 19th May 2015
Bank Nifty today was trending up and did cross our price resistance zone however as per our Bank Nifty Prediction and Bank Nifty Trend remains down for now and Minor trend will turn up only if high made on 19th May 2015 (as per our time cycle) is crossed. Assuming that Bank Nifty Trend turns up even in that case we will get ample opportunities to enter near supports or on declines or low risk entry points where risk reward is favorable to trade the pullback. We are expecting a rate cut to come in on either today evening or on 19th May 2015 if that happens then initial gap post news of Reserve Bank Of India cutting 25 Bps interest rate must sustain if it does not sustain and Bank Nifty starts crashing down in ultra super sonic speed. If this happens from 20th May 2015 sharp downside is expected within Bank Nifty and Banking sector.
If the decline is slow post the event then in that case expect one to three days decline in Bank Nifty this decline will be used to enter longs at favorable risk reward points only to trade the pullback.
With in Bank Nifty Private sector banks if minor trend changes to up then AxisBank and SBIN from Public sector Banks will outperform Bank Nifty and on decline towards Friday 22nd May 2015 we will buy Axis Bank and State Bank of India near small stop loss points or favorable risk reward points.
Bank Nifty components Axis Bank has resistance between 572-568 unless stable above 572 (Nse Spot) Above 572 Axis Bank Trend becomes neutral but if Bank Nifty changes Minor Trend to Up then Axis Bank will lead and outperform Bank Nifty. Icici Bank is the ideal short selling set up even if Bank Nifty minor trend changes up still this will under perform.
Punjab National Bank needs to be avoided at all cost and this is one counter that we will short sell if Bank Nifty confirms break down. Also Icici bank can be short sold if we get confirmation on Bank Nifty break down. So the strategy will be Buy Axis and SBIN on dips if Bank Nifty Minor Trend turns up or short sell PNB and Icici bank if Bank Nifty confirms break down. For 19th May 2015 price is not very important time is extremely important as time is more important than price. Anyways Bank Nifty spot resistance is at 18646-18600.
Bank Nifty Live Updates will be given as and when possible
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